Bhutan is one of the most isolated nations in the world; foreign influences and tourism are heavily regulated by the government to preserve its traditional Tibetan Buddhist culture. Most Bhutanese follow either the Drukpa Kagyu or the Nyingmapa school of Tibetan Buddhism. The official language is Dzongkha (lit. "the language of the dzong"). Bhutan is often described as the last surviving refuge of traditional Himalayan Buddhist culture. Non-Buddhists complain of human rights violations; approximately 100,000 ethnic Nepali (who are generally Hindu) left the country in the 1980s because they were unhappy with new government policies designed to reduce the growing illegal immigration from Nepal.

Bhutan has been a monarchy since 1907. The different dzongkhags were united under the leadership of the Trongsa Penlop. The current king, Jigme Singye Wangchuk, has made some moves toward constitutional government.